"How could someone "almost financially illiterate" have property in their super? Surely they don't have a SMSF."
Sorry, I put that badly. He has borrowed the whole amount against his Super and his own house. I can't remember the interest rate now, but it's higher than what has been generated by his Super.
He was told by the spruikers that 'property always goes up', 'you just can't lose by doing this' etc. He accepted this without reservation.
On the actual question, however, I think you might be surprised at the financial inexperience of some people who have been convinced to start a SMSF, often just falling for advertising like "Buy Fantastic Property through your SMSF" etc. And people will be attracted to the generous taxation treatment, allowing this to override their own dubious ability to actually invest profitably on their own behalf.
